October 30, 1975

plan to borrow $4-billion against munic union pension funds to avoid default by NYC in Dec and meet its cash needs in rest of fiscal '76 and possibly for 2 more yrs is expected to be put into final form soon; participants confirm to NY Times that under proposal $8.5-billion in assets of funds would be used to guarantee loans that through MAC bond purchases would convert city's short-term debt into long-term, eliminating most of recurring cash-flow crisis; proposal was negotiated for more than mo by Herbert Elish, Munic Assistance Corp exec dir, and Jack Bigel, consultant to city's largest pension funds; negotiations have been conducted quietly because of possibility that any disclosure might thwart Cong consideration of legis to deal with city's default (M)

Monopoly Subcom of Sen Small Business Com hears testimony that over-the-counter drugs used as sleep aids and sedatives are probably ineffective in recommended doses and could be hazardous in larger quantities; Sen Gaylord Nelson, subcom chmn, says indus has had over a dozen yrs to show that drugs were effective but has failed to do so; notes that Kefauver amendments of 1962 require that evidence of effectiveness and safety be provided for all drugs on market; Dr Anthony Kales of Penna State Univ says he studied Sominex and found that normal dosage had no favorable effect whatsoever; indus svy shows that Sominex and Execdrin PM acct for over two-thirds of market; Kales and other witnesses note that although there are many different sleep productes, virtually all contain same basic ingredients; Dr David J Greenblatt of Mass General Hosp says in addition to fact that products are ineffective, excessive quantities can cause serious ill effects; Dr William H Forrest Jr of Stanford Univ School of med says he would not advise removing drugs from market but that consumer should be given more information than was now available on package (L)

2d in series of articles on US energy situation 2 yrs after Arab oil embargo sees abundant evidence of continuing efforts to cut back on energy use (L)

Sen Appropriations Subcom on Defense restores to HR defense appropriations bill $140-million to buy all 6 AWACS airborne command posts wanted by Pentagon instead of 2 approved by HR; restoration was urged by Sens Henry M Jackson and Warren G Magnuson (S)

illus of Sadat addressing UN General Assembly